FxWirePro: EUR/JPY trades weaker, euro met with some fresh supply after mixed euro area PMI data

EUR/JPY chart - Trading View 

EUR/JPY was trading 0.12% lower on the day at 132.80 at around 08:30 GMT, slipping lower from session highs at 133.20.

The pair struggled to capitalize on its early uptick and met with some fresh supply after mixed PMI data from the euro area.

Data released by IHS/Markit research showed on Friday that Eurozone manufacturing sector activity maintained its pace of expansion in May.

Eurozone Manufacturing purchasing managers index (PMI) eased slightly from 62.9 in April to 62.8 in May, beating forecasts at 62.5.

The IHS Markit Eurozone Services PMI jumped to 35-month highs of 55.1 in May vs. 52.3 expected and 50.5. 

While Composite PMI expanded sharply to 56.9 in May vs. 55.1 expected and 53.8 previous.

German Preliminary Manufacturing PMI dropped to a three-month low of 64.0 in May vs. 65.9 expected and 66.2 prior.

Meanwhile, Services PMI expanded to 52.8 in May as against the previous month’s reading of 49.9 and 52.0 estimated.

Germany Composite Output Index rebounded to hit two-month highs, arriving at 56.2 in May vs. 57.1 expected and April’s 55.8.

Major trend is bullish, but overbought conditions warrant some caution. Pullbacks are likely to be shallow. 

Resumption of upside will see test of 88.6% Fib at 134.87. Breach below cloud will change near-term dynamics.